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  • Hops frustration

    I just need to vent here amongst my peers for a minute. I contract the hard to get hops, but things like Columbus and Willamette I just buy off the spot market. After all, they appear to be in surplus. So I call my supplier and I'm told that all spot sales have been suspended due to another "hop shortage"! How can it be that they don't have enough #$@%ing CTZ to send me an 11lb box? ...does it feel like they've got you by the #@%$'s and just want to give 'em a little squeeze to remind you sometimes? As much as I love it, this brewing business can be discouraging.

  • #2
    Let me guess... Country Malt? I talked to them 10 days ago and was told it would be no problem to buy Cascades on spot the rest of the year. When I called Monday I was informed of that all spot hop sales were frozen. I guess a lot changed in a week huh? Of course this was right after I get the letter saying that I'm only getting 65% of the Citra and 70% of the Amarillo I contracted for next year.

    I used to be a big supporter of Country Malt but I have to say it's getting harder and harder to not feel like something fishy is going on.Yeah we're all getting screwed, but as long as we keep giving the same people our business they will keep treating us this way. ok...venting done!
    Hutch Kugeman
    Head Brewer
    Brooklyn Brewery at the Culinary Institute of America
    Hyde Park, NY

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    • #3
      Country Malt --- They are Good Folks !! to bad they choose to sell Hop Union Hops

      HOPUNION L.L.C. GROWER OWNED ∙ CRAFT BREW FOCUSED

      203 Division St., Yakima, WA 98902 │ Phone: 1-800-952-4873 │ Fax: 1-800-952-4874 │ www.hopunion.com

      To Our Brewery Customers-
      With a combination of lower than expected 2012 crop yields across many varieties and the aggressive contracting done by craft breweries, Hopunion is completely sold out -or close to it- in many of our high-volume hop varieties. As a result, we will end contracting for 2012 crop hops Thursday, November 1st. From that point on, all purchases of remaining 2012 crop will be via spot orders on a first come, first served basis.
      For those of you who wish to pursue a contract prior to November 1st, please contact your Hopunion Regional Manager or Regional Sales Coordinator. Attached is a list of current availability as of Monday, October 29, 2012. Please note, availability is subject to change.
      Hopunion is currently working with all of our growers to forecast hop needs for crop year 2013 and beyond. Being the only grower-owner hop provider, your future contracts and projections can directly impact what is planted for next year and minimize risk of shortages. Our Regional Managers will gladly take the time to review your contacting needs for 2013. The more accurately your 2013 contracts reflect your projected needs, the easier it is for us to plan the needed acreage –by variety- with our growers.
      Thank you for your business!
      The Hopunion Sales Team HOPUNION L.L.C. GROWER OWNED ∙ CRAFT BREW FOCUSED
      203 Division St., Yakima, WA 98902 │ Phone: 1-800-952-4873 │ Fax: 1-800-952-4874 │ www.hopunion.com

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      • #4
        Hops

        Yes, the wholesale hop cartel strikes again.

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        • #5
          Rye substitution/Pale ale

          Suck it up hop heads! You are brewers adapt to the change. During a hop shortage sometime in 2006-8, we cut our hop bill of centennial/ bittering by half and substituted rye malt for that spicy character. 99% of the customers did not notice the change.
          Work with it, it is commodity based market.


          Lance Jergensen
          Rebel Malting Co.
          Reno, Nevada USA
          775.997.6411
          ljergensen@gmail.com

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          • #6
            If you are looking for Willamette I have a bunch. Sorry I have no extra CTZ at this point. PM if you are in need. Cheers
            Joel Halbleib
            Partner / Zymurgist
            Hive and Barrel Meadery
            6302 Old La Grange Rd
            Crestwood, KY
            www.hiveandbarrel.com

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            • #7
              Starting up I flat out KNEW that we had no chance in hell of getting Simcoe, Citra, etc.. and I knew I'd be on the spot market until 2013. So I designed my beers to make the best use of classic, reasonably available craft hops. (I still get a kick out of the "OMG we open in a month and I need 1000lbs of Citra!!!" posts you see from time to time.) Then there was a shortage of Cascade last year. WTF. So now we're contracted with CMG for our Cascade needs for next year. Can't wait to see if it's "Yeahhhh, about that..."

              I do recommend talking to some of the smaller independent growers and brokers. We get most of our hops from Crosby down in Oregon and I've always had good dealings with them.
              Russell Everett
              Co-Founder / Head Brewer
              Bainbridge Island Brewing
              Bainbridge Island, WA

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              • #8
                I had the same problem with Country Malt trying to get magnum - German or otherwise - and they said. No. so I went to Brewers supply group and had my hops 2 days later.
                Tim Eichinger
                Visit our website blackhuskybrewing.com

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                • #9
                  Why not contract?

                  I'm curious why people would choose not to contract for hops? After the last shortage we started extending out our contracts 4 to 5 years. This gives the farmers information on how many hops to plant in anticipation for future growth. We also see better pricing. I usually contract about 80% of my projected needs 5 years out and then fill in the contracts as I get closer. Works great.



                  Cheers,


                  dave

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                  • #10
                    This is my first year, and I had some idea, but no firm numbers to project that far out. I thought for the first year I would buy spot pricing, and get a better idea for the next few years. I also am not tied into any particular hops. there are certainly some house beers, but I try to brew different versions of a style, rather than the same brew each time. Different hops make different beers, so that is why I did not contract out this year. I will certainly try to contract a few styles this next year, but it seems I will be left out any way. I have heard of a number of smaller breweries being shorted their contracted hops in favor of the larger ones. The contract saves me a few cents per pound, but the seller can break the contract, so if I can't rely on my contract...
                    You get the picture. I know it is a volatile market, did not realize how much so. As a brewer new to mass production, rather than homebrew, I wanted to be able to try anything I could get my hands on.
                    I really miss the smutty farmhouse and ipa here in Michigan, by the way.
                    Cheers!

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                    • #11
                      Originally posted by kugeman View Post
                      I'm only getting 65% of the Citra and 70% of the Amarillo I contracted for next year.
                      I've never bought hops on contract... Is this a common thing? I assume there would have to be a clause to the effect that they can change quantities at their discretion. If so, why bother with a contract?
                      Sent from my Microsoft Bob

                      Beer is like porn. You can buy it, but it's more fun to make your own.
                      seanterrill.com/category/brewing | twomilebrewing.com

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                      • #12
                        When there are shortages to certain hops I have definitely been given less than my contracted amount. However, I at least get a majority of what I contracted for which is better than not getting any. The other advantage to contracting is helping the farmers know what kind of hops and how much to plant. Because hops take a few years to mature the longer out you contract the easier it is for farmers to keep hops in the ground. This same farmland can be used for apples, wine grapes or other crops.

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                        • #13
                          I understand the purpose of contracting, and I'm not insensitive to the realities of trying to forecast agricultural production. I'm just surprised to learn that this is the status quo. Is it a one-way street? Or can I, as a brewery, have a bad sales year and let CMG know that I'll only be buying 70% of what I contracted for next year?
                          Sent from my Microsoft Bob

                          Beer is like porn. You can buy it, but it's more fun to make your own.
                          seanterrill.com/category/brewing | twomilebrewing.com

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                          • #14
                            Originally posted by a10t2 View Post
                            I understand the purpose of contracting, and I'm not insensitive to the realities of trying to forecast agricultural production. I'm just surprised to learn that this is the status quo. Is it a one-way street? Or can I, as a brewery, have a bad sales year and let CMG know that I'll only be buying 70% of what I contracted for next year?

                            It is a contract so you do own those hops and will need to pay for them. However, that's why I tend to contract for about 80% of what I need and then fill in the difference in the months leading up to harvest. Remember that well packaged and properly stored hops are still usable for quite a while. Another factor is price. My contracted prices are significantly cheaper than spot hops, and the further out I contract the better the prices tend to be.

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                            • #15
                              We do contract but initially I only contracted the hard to get stuff and figured that commonly used, less in demand hops like Magnum wouldn't need contracting. My wife convinced me otherwise so next year we contract everything. At the time this seemed unnessecary but I guess once again my wife is correct. when will I learn?
                              Tim Eichinger
                              Visit our website blackhuskybrewing.com

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